What Rental Car Insurance Do I Need If I Don't Own A Car?
For those that own their own car, coverage from their personal auto insurance usually extends to a rental vehicle. However, if you hold a license, but don't own a car, you will need to look to elsewhere for your rental car insurance cover.
Can My Credit Card Provide Rental Car Insurance?
Many credit cards – such as Visa, MasterCard and American Express – include car rental insurance as an added benefit to their customers. For the coverage to apply though, the cardholder (you) typically needs to pay for the rental car using that credit card.
What Level Of Coverage Will My Credit Card Provide?
The level of cover provided by different credit cards varies. For this reason, you should contact the issuer of your card to confirm exactly what rental car insurance coverage they provide.
The most common type of coverage that credit cards provide is a Collision Damage Waiver (CDW). In short, a CDW prevents a rental company from pursuing you for financial reimbursement for damage caused to their rental vehicle (minus a deductible). However, in most cases, your credit card will not cover loss of use, diminished value or the deductible.
What Does Loss Of Use, Diminished Value And Deductible Mean?
Loss of use refers to the loss of income that a rental company suffers whilst the rental car is out of commission. In some cases, your rental car company will charge you for loss of use if their vehicle becomes damaged whilst in your possession.
Diminished value refers to the reduction on the re-sale value of a car after it has been involved in an accident. In some cases, your rental car company will charge you the amount that the re-sale value has gone down by.
Deductible is the amount you may have to pay before the rental company or their insurer steps in to cover the remainder of the costs.
When Should I Consider Purchasing The Rental Company's Insurance?
Your rental company will provide liability insurance with the lease of a vehicle, although it is ordinarily only the minimum level set by the state. But your rental company may not provide you with any level of damage or loss protection such as a CDW unless you pay for extra rental car insurance.
I Have Heard That Buying Insurance From A Rental Company Is Expensive
Buying rental car insurance and extras from the rental company can double the price of hiring a vehicle. Furthermore, the likelihood of overpaying increases if you buy your rental car insurance over the counter when you pick up your vehicle. For this reason, you should check the price of car rental insurance from various sources – such as standalone providers – before you travel.
How Much Can I Save Buying Car Rental Insurance From A Standalone Provider?
If you buy CDW cover before you travel from Insuremyrentalcar.com, you can save up to 70% on the prices offered by car rental companies over the counter. Prices start from $5 a day, $17.50 per trip and $93.99 per year for regular travelers.
Are There Any More Benefits To Buying Rental Car Insurance From Insuremyrentalcar.com?
Unlike most credit cards and many car rental companies, a CDW/LDW provided by Insuremyrentalcar.com provides cover for loss of use. In most states, a CDW/LDW provided by insuremyrentalcar.com also provides cover for diminished value – again, unlike most credit cards and many car rental companies. Plus, there is zero deductible to pay against damage to the rental car.
Moreover, many rental car company and credit card policies exclude protection for the vulnerable parts of the vehicle such as the roof, undercarriage, tires and windshield. If you buy a CDW/LDW policy from Insuremyrentalcar.com, these vulnerable areas are covered as standard.